Washington, Sep 2 (IANS): The US-India Business Council (USIBC) has welcomed Indian government's acceptance of a panel's recommendation that the Minimum Alternative Tax (MAT) provisions do not apply retrospectively to Foreign Institutional Investors (FIIs) before April 1 this year.

"The Council applauds Finance Minister (Arun) Jaitley and Justice A.P. Shah and their teams for reaching this resolution," the trade body composed of more than 300 top-tier US and Indian companies advancing US-India commercial ties, said in a statement.

"This announcement demonstrates the Government of India's commitment to attracting long-term foreign investment into the country by providing greater tax certainty and ensuring ease of doing business for the global investment community," said USIBC President Dr. Mukesh Aghi.

This decision reduces tax uncertainty for FIIs and will result in increased investment into India, it said.

USIBCsaid it supports actions, including those announced in India's Union Budget, supporting a more predictable and consistent tax framework that follows published guidance, respects past court decisions, and conducts audits and investigations without predetermined outcomes and targets for revenue.